New Delhi: Net systematic investment plan (SIP) inflows into mutual funds surged to a record Rs 2 trillion in financial year 2025-26 (FY26), even as equity market volatility led to a rise in SIP account closures, according to data released by the Securities and Exchange Board of India (SEBI).
The net SIP inflow accounted for around 56 per cent of the Rs 3.5 trillion in gross SIP investments during FY26, the highest share in at least three years. The corresponding share stood at 54 per cent in FY25.
Net SIP inflow is calculated after deducting redemptions from gross SIP investments. The monthly SIP figures reported by the Association of Mutual Funds in India (Amfi), meanwhile, represent gross inflows.
The data indicates that the increase in SIP account closures during FY26 did not translate into a proportionate rise in redemptions. Based on gross and net SIP figures, total SIP outflows through redemptions stood at around Rs 1.5 trillion during the year.
Although redemptions increased by about 15 per cent from nearly Rs 1.3 trillion in FY25, the pace of growth was the slowest recorded in the past three years. SIP outflows had jumped 57 per cent in FY24 and 18 per cent in FY25.
The rise in redemptions in FY26 was also significantly lower than the 21 per cent growth in gross SIP inflows recorded during FY25, highlighting the resilience of retail investors despite challenging market conditions.
Mutual fund industry officials attributed the strong growth in net SIP inflows to a growing long-term investment approach among retail investors. Investors, they said, appeared more willing to continue their SIP commitments through periods of market volatility rather than exit investments in response to short-term corrections.
However, market turbulence did have a visible impact on the pace of new SIP account additions. The number of SIP accounts increased by only around 4 million in FY26, compared with nearly 17 million net additions in FY25, according to SEBI data.
The equity market has remained volatile since September 2024. Over the two-year period ending March 2026, the Nifty declined by more than 5 per cent, while the Nifty Smallcap 250 remained broadly flat. The Nifty Midcap 150, meanwhile, gained around 6 per cent.
(IANS)
